CommSec provides opportunity to tap into strong Asian sharemarkets

22 May 2006

Asian economies have been key beneficiaries from global economic expansion resulting in a sharemarket boost across the region. In recognition of this, Commonwealth Bank has launched the latest of its series of Capital investment products, Capital Asia.

CommSec’s Chief Equities Economist, Craig James, said the global economy has continued to power ahead in 2006, thanks largely to unprecedented growth in mainland China.

"The economies which stand to benefit most from the global expansion are export-orientated economies, particularly those leveraged to the Chinese economy.

Capital Asia is a five year Australian Dollar investment that seeks to provide capital growth based on the performance of key sharemarket indices for Japan (Nikkei 225), Korea (Kospi 200), Singapore (MSCI Singapore Free), Taiwan (MSCI Taiwan) and Hong King (Hang Seng).

Capital Asia also offers capital protection at maturity and a guaranteed minimum 7% coupon in the first year of the investment, and potential coupons of 3% pa during years 2–5. The minimum investment is $10,000.00.

"Capital Asia is the next in a series of products from the Commonwealth Bank that provide this."

"Taking advantage of Asia’s growth opportunities hasn’t always been easy for Australian investors. Concerns about which stocks to choose, the effects of foreign exchange and the safety of investor capital has tended to make investors cautious. However, a product like Capital Asia allows investors to put these concerns to rest."

Mr Blomfield said Capital Asia is suitable for individuals, companies and trusts looking to diversify their investment portfolio in growing international markets but who may not have the time and resources to do it all themselves.

"We’re excited about offering CommSec clients the next in the series of Capital products because of the impressive growth opportunities and the potential for annual coupons."